Table 13-18
$$\begin{array} { | c | c | c | }
\hline \text { Year } & \begin{array} { c }
\text { Nominal Average Hourly } \
\text { Earnings }
\end{array} & \begin{array} { c }
\text { CPI } \
( \mathbf { 1 9 8 2 - 1 9 8 4 } = \mathbf { 1 0 0 } )
\end{array} \
\hline 2011 & \$ 10 & 100 \
\hline 2012 & 10 & 105 \
\hline 2013 & 12 & 117 \
\hline
\end{array}$$
-Refer to Table 13-18.Looking at the table above,what is the rate of growth of real average hourly earnings from 2012 to 2013?
A)7.7%
B)6.25%
C)4%
D)-4%

Question

Table 13-18
 $$\begin{array} { | c | c | c | } 
\hline \text { Year } & \begin{array} { c } 
\text { Nominal Average Hourly } \
\text { Earnings }
\end{array} & \begin{array} { c } 
\text { CPI } \
( \mathbf { 1 9 8 2 - 1 9 8 4 } = \mathbf { 1 0 0 } )
\end{array} \
\hline 2011 & \$ 10 & 100 \
\hline 2012 & 10 & 105 \
\hline 2013 & 12 & 117 \
\hline
\end{array}$$
-Refer to Table 13-18.Looking at the table above,what is the rate of growth of real average hourly earnings from 2012 to 2013?
A)7.7%
B)6.25%
C)4%
D)-4%

Quizplus · Accepted Answer

The rate of growth of real average hourly earnings from 2012 to 2013 is calculated as follows:Real average hourly earnings = Nominal average hourly earnings / CPIIn 2012, real average hourly earnings = 10 / 105 = 0.0952In 2013, real average hourly earnings = 12 / 117 = 0.1026The rate of growth of real average hourly earnings from 2012 to 2013 = (0.1026 - 0.0952) / 0.0952 * 100% = 7.7%Therefore, the correct answer is A) 7.7%.

Table 13-18 -Refer to Table 13-18